FedEx Corporation (FDX)
Solvency ratios
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.36 | 3.18 | 3.23 | 3.19 | 3.15 | 3.26 | 3.29 | 3.30 | 3.34 | 3.47 | 3.55 | 3.41 | 3.45 | 3.43 | 3.38 | 3.37 | 3.43 | 3.77 | 3.86 | 3.99 |
The analysis of FedEx Corporation's solvency ratios over the specified periods reveals a consistent pattern with notable observations:
1. Debt-to-Assets Ratio: Across all reporting dates, the debt-to-assets ratio remains at 0.00. This indicates that the company has not reported any debt relative to its total assets during the entire specified timeframe, implying either negligible or no leverage through debt financing.
2. Debt-to-Capital Ratio: Similarly, the debt-to-capital ratio shows a consistent value of 0.00 throughout the periods. This suggests that FedEx did not utilize debt as a component of its capital structure during these times, reinforcing the absence of leverage through debt funding.
3. Debt-to-Equity Ratio: The debt-to-equity ratio is also recorded at 0.00 consistently, aligning with the previous ratios and further confirming the lack of debt obligations in relation to shareholders' equity.
4. Financial Leverage Ratio: In stark contrast to the other ratios, the financial leverage ratio exhibits notable fluctuation, starting from 3.99 in August 2020 and gradually declining over time. By May 2025, the ratio decreases significantly to approximately 1.36. This ratio typically reflects the extent to which a company's assets are financed through debt compared to shareholders' equity; however, with other debt ratios at zero, this discrepancy suggests that the "financial leverage" figure may be derived from other financial metrics or accounting adjustments rather than traditional debt-based leverage.
Overall Interpretation: The data indicates that FedEx's balance sheet, during the entire period, did not include debt or liabilities proportionate to assets, capital, or equity, suggesting a solvent, debt-free position. The persistent zero ratios imply that the company either operates entirely with equity financing or records negligible or no debt, which is atypical for a large logistics and transportation enterprise that often relies heavily on debt financing for capital expenditures and operational liquidity.
The declining trend in the financial leverage ratio from 3.99 to approximately 1.36 may suggest adjustments or alternative calculations influencing this metric; however, given the zero values in the primary debt ratios, it does not indicate increased leverage through debt.
In summary, FedEx's solvency ratios, as provided, depict a company with no reported debt obligations during the examined periods, reflecting a position of financial independence from leverage. This unique profile warrants further investigation into the company's financing practices and accounting treatments to fully understand the underlying reasons for these ratios.
Coverage ratios
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | 68.04 | 34.53 | 23.04 | 18.57 | 18.24 | 6.50 | 5.85 | 5.48 | 3.55 | 6.64 | 7.30 | 7.31 | 12.39 | 11.37 | 10.73 | 10.53 | 6.43 | 5.57 | 4.83 |
The analysis of FedEx Corporation's interest coverage ratios over the specified periods reveals significant variability, indicating fluctuations in the company's ability to meet its interest obligations through its earnings before interest and taxes (EBIT).
From August 31, 2020, through February 28, 2022, the interest coverage ratio remained within a moderate to strong range, starting at 4.83 and gradually rising to 12.39. This trend suggests an improving capacity to service interest expenses during this period, potentially reflecting strengthened operational performance or increased earnings.
However, a notable decline occurred afterward, with the ratio decreasing to 7.31 by May 31, 2022, and maintaining around similar levels through August and November 2022 (7.30 and 6.64, respectively). This downward movement indicates some deterioration or increased interest burden relative to earnings, although the ratio still remained above 5, suggesting reasonably comfortable coverage.
The ratio experienced a significant decline by February 28, 2023, dropping to 3.55, which falls into a more concernogenic range, signaling potential challenges in covering interest expenses comfortably. Subsequently, the ratio rebounded to 5.48 by May 31, 2023, and stabilized at approximately 5.85 by August 31, 2023, reflecting some recovery in earnings capacity relative to interest obligations.
In the most recent periods, the ratios demonstrate marked improvement, with substantial increases to 6.50 as of November 30, 2023, and notably to 18.24 by February 29, 2024. The ratios continued their upward trend, reaching 18.57 in May 2024, and escalating further to 23.04 in August 2024, followed by a sharp increase to 34.53 in November 2024, and an exceptional 68.04 by February 28, 2025. These elevated figures imply a significantly enhanced ability to cover interest expenses, potentially due to substantial EBIT growth, reductions in interest obligations, or a combination of both.
The absence of data beyond May 2025 suggests that the trend is ongoing, but the current figures indicate a very strong interest coverage position, markedly above typical benchmarks and reflective of robust earnings relative to interest expenses.
Overall, the company’s interest coverage has experienced periods of variability, with initial stability and growth, followed by a notable decline, then a significant recovery and substantial improvement in recent periods. This evolution demonstrates resilience and potential strengthening of profitability or debt management strategies in recent years.